Bdos: Lotsa money, no place much to park it

EXCESS CASH in the economy is causing the Central Bank of Barbados and its economic and finance professionals a headache.

The shortage of new investment opportunities to channel the cash into could mean that funds may start leaving the country soon. But this is not peculiar to Barbados.

Governor of the bank, Dr Marion Williams, made the disclosure, yesterday while speaking about the Importance of the Capital Markets in The Caribbean and Some of the Challenges Faced at the bank’s fourth biennial seminar on The Caribbean, the Global Economy and the International Capital Market. “In Barbados and in many capital markets across the Caribbean, there has been a heavy build up of liquidity and this is evidence that there is demand for investment vehicles. We’ve been talking for the last year about the build up of liquidity in Barbados and the cash in the commercial bank.

“Some of it has had to do with the fact that we have reduced our securities requirement but much of it has to do with the fact that there are not sufficient investment vehicles out there in which funds can be deployed.”